Telematics includes the use of technology to communicate information from one location to another. Telematics has been used for various applications, including for the exchange of information with electronic sensors. As telematics technology has progressed, various communication methodologies have been incorporated into automobiles and other types of vehicles.
Telematics systems such as on-board diagnostics (OBD) systems may be used in automobiles and other vehicles. OBD systems may provide information from the vehicle's on-board computers and sensors, allowing users to monitor a wide variety of information relating to the vehicle systems, such as engine RPM, emissions control, coolant temperature, vehicle speed, timing advance, throttle position, and oxygen sensing, and many other types of data. Telematics devices installed within vehicles may be configured to access the vehicle computers and sensor data, and transmit the data to a display within the vehicle, a personal computer or mobile device, or to a centralized data processing system. Data obtained from OBD systems has been used for a variety of purposes, including maintenance, diagnosis, and analysis.
Insurance companies have recently shown interest in using telematics system to monitor and analyze driving performance of individuals insured by the insurance companies. In this way, insurance companies may provide benefits to drivers that engage in safe (i.e., positive) driving habits. In some conventional approaches, insurance companies may provide benefits based on mileage. The theory behind this approach assumes that when a driver drives less, the driver is less likely to be involved in an accident and thus represent a lower risk. Accordingly, insurance companies may seek to encourage drivers not to drive in conventional practice. As an example, insurance companies may provide benefits based on mileage awarding the most benefits to drivers that drive least.